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George invests in a portfolio of 3 stocks with the weights and betas given in the table below. The risk-free rate is 2%, and the

George invests in a portfolio of 3 stocks with the weights and betas given in the table below. The risk-free rate is 2%, and the expected return on the market portfolio is 7.5%. Using CAPM, what is the expected return of his portfolio?

Stock Portfolio Weight Beta
CMG 25% 1.35
SHAK 15% 1.74
MCD 60% 0.62

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